Analysts/Institutional Investor Meet/Con. Call Updates

August 11, 2026 BSE Ltd, National Stock Exchange of India Ltd. Corporate Relationship Department, Listing Department, Phiroze Jeejebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai- 400 051 Scrip Code: 544057 Symbol: HAPPYFORGE Dear Sir/Ma’am, Sub: Transcript of the Earnings Conference Call for the quarter ended 30th June 2026 held on 5th August 2026. Pursuant to Regulation 30 of the Listing Regulations, kindly find enclosed the copy of the transcript of the Earnings call held on Wednesday, 5th August 2026 on the Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June 2026. Kindly take the same on records. Thanking you FOR HAPPY FORGINGS LIMITED BINDU GARG Company Secretary & Compliance Officer Membership No.: F6997 BXXIX-2254/1, Kanganwal Road P.O. Jugiana, Ludhiana, Punjab, 141120 Regd Office : “Happy Forgings Limited Q1 FY27 Earnings Conference Call” August 05, 2026 Disclaimer: E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recording uploaded on the stock exchange on 05th August 2026 will prevail. In case of any conflict of factual information with published data in the Investor Presentation, the latter should be considered to be accurate. MANAGEMENT: MR. ASHISH GARG – MANAGING DIRECTOR – HAPPY FORGINGS LIMITED MR. PANKAJ KUMAR GOYAL – CHIEF FINANCIAL OFFICER – HAPPY FORGINGS LIMITED Page 1 of 14 Happy Forging Limited August 05, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Happy Forgings Limited Q1, FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Garg, Managing Director from Happy Forgings Limited. Thank you, and over to you sir. Ashish Garg: Thank you. Good morning, and a very warm welcome to all of you to Happy Forgings Limited Q1, FY27 Earnings Call. With me today are Mr. Pankaj Kumar Goyal, our CFO; and Strategic Growth Advisors, our Investor Relations Advisor. I trust everyone had an opportunity to review our FY27 Quarter 1, financial statements and investor presentation, which we have filed with stock exchanges. We started FY27 on a strong note, delivering robust year-on-year growth along with improved profitability. Revenue for the quarter reached Rs.449 crores, while PAT stood at Rs.91 crores. Marking highest ever quarterly revenue and profitability with growth of 27.0% and 39.2% respectively. Finished goods volumes increased by 23% during the quarter, while realizations per kg improved by 3.2% to Rs.253 per kilograms. Strong volume growth coupled with higher realizations underscored the strength of our business model, disciplined execution, and continued focus on value-added growth. On the profitability front, we continued to deliver industry-leading margins. EBITDA for the quarter stood at Rs.141 crores, and EBITDA margin expanded by 275 basis points year-on-year to 31.3%. This marks the 4th consecutive quarter in which we have delivered an EBITDA margin in excess of 30%. PAT margin also expanded by 178 basis points to 20.4%. As communicated during our previous earnings call, we had witnessed an increase in input cost and we were engaged in discussions with our customers regarding inflationary pressures on other manufacturing costs. We have now successfully negotiated price revisions with OEMs and benefits from these revisions are expected to fully reflect in our P&L from Quarter 2 onwards. Our capacity expansion program also continues to progress as planned and remains aligned with the strong opportunities we see across our focus segments. These investments will support our future growth while further strengthening our value-added capabilities. Now turning to our segmental performance. Page 2 of 14 Happy Forging Limited August 05, 2026 Commercial Vehicles continue to be our largest business segment, contributing 33% of our revenues during Q1 FY27The segment delivered healthy single-digit growth during the quarter, With the domestic business registering strong growth of around 18%, supported by robust infrastructure activity, healthy freight movement, replacement demand, and sustained transportation activity. On the export front, growth was impacted by transit delays due to geopolitical conditions, resulting in higher inventory in transit and lower sales conversion during the quarter. Farm equipment was our second largest revenue contributor during Q1 FY27 accounted for 32% of our total revenue. We delivered growth in mid-20s during the quarter, with the domestic business registering over 20% growth, supported by favourable demand in the domestic farm equipment market. On the export front, we continue to register growth despite a challenging demand environment in the US and Europe. Tractor demand in these markets remains subdued due to low farm incomes, high interest rates, weak commodity prices and cautious farmer spending, resulting in deferred equipment purchases. The industrial segments contributed 16% of our revenue during the quarter. We achieved around 50% growth across both domestic and export segments. Demand remained healthy across power generation, renewable energy including wind, railways, oil and gas, and digital infrastructure. The broader capital goods and industrial ecosystem also remained robust, supported by sustained investments from both the government and the private sector. Continued investments in renewable energy, power transmission and grid infrastructure, railway modernization, and the rapid expanding data centre ecosystems are expected to support demand going forward. Our off-highway contributed 11% to our revenue. The segment delivered growth of over 40% across both domestic and export segments. From an end-user perspective, the domestic construction equipment segment registered growth of almost 9% during the quarter, supported by healthy project awards, particularly across roads, highway, and other infrastructure segments. Export markets in the US and Europe also witnessed growth in construction equipment demand. Passenger vehicles now contributes around 8% to our revenue. The segment delivered growth of more than 70% with domestic business growing by over 40%, supported by healthy market demand and increased wallet share. Most OEMs reported strong performance while retail demand remained healthy, reflecting the underlying strength of the market. On the export front, revenue more than doubled as we began executing export orders that had been secured earlier. Our continued focus on value addition is also reflected in our product mix. Machining contribution increased to 90% in Q1 FY27 compared with 88% in Q1 FY26. Furthermore, one of the key strategic developments for our business has been continued diversification of our revenue mix, as reflected in the increasing contribution from industrial and passenger vehicles. We expect this diversification to gain further momentum, supported by a strong order book representing around Rs.950 crores of peak incremental annual revenue potential over the next two years to three years. This order book is largely driven by industrial and passenger vehicle programs and is predominantly export-oriented. At the same time, the quality of our order book continues to Page 3 of 14 Happy [Showing first 8,000 characters — download PDF for full document]